Section 255 - Powers of Court in facilitating arrangements, compromises, mergers and divisions

(1) Despite any provision of this Act or the constitution of a company, the Court may,

(a) on the application of a company, or

(b) with leave of

(i) the Court,

(ii) a member or creditor of a company,

order that an arrangement, compromise, merger or division shall be binding on the company, and on any other person or classes of persons as the Court may specify and any such order may be made on the terms and conditions that the Court considers appropriate.

(2) Before making an order under subsection (1), the Court may,

(a) on the application of

(i) the company,

(ii) a member or creditor of the company,

(iii) any other person who appears to the Court to be interested in the matter, or

(b) on its own motion,

make any one or more of the orders specified in subsection (3).

(3) An order referred to under subsection (2) consist of

(a) an order that notice of the application, together with any information relating to the order as the Court considers appropriate, is given

(i) in a form and manner, and

(ii) to the persons or classes of persons,

that the Court may specify;

(b) an order directing the holding of a general meeting of

(i) the members of a company,

(ii) any class of members of a company determined by the Court,

(iii) the creditors of a company, and

(iv) any class of creditors of a company determined by the Court,

to consider and approve in the manner as the Court may specify, the proposed arrangement, compromise, merger or division;

(c) an order requiring that a report on the proposed arrangement, compromise, merger or division is,

(i) prepared by a person specified by the Court; and

(ii) if the Court considers it appropriate, furnished to the members or any class of members or creditors or any class of creditors of a company or any other person who appears to the Court to be interested;

(d) an order as to the payment of the costs incurred in the preparation of any such report; and

(e) an order specifying the person who is entitled to appear and be heard on the application to approve the arrangement, compromise, merger or division.

(4) An order made under this section shall have effect on the date specified in that order.

(5) The directors of the company shall, within fourteen days of an order made by the Court, ensure that a copy of the order is filed with the Registrar for registration.